THE risks of South African’s credit rating being
downgraded had increased, but how the rand would react to a downgrade
was uncertain, Reserve Bank deputy governor Daniel Mminele said on
Monday night.
Ratings agencies Fitch and Standard & Poor’s will review SA’s credit ratings in two months’ time and both agencies have SA just one level above sub-investment grade, or junk status.
"The risks of a downgrade have definitely increased," Mr Mminele said. "So, an element would be priced in already, but how much more of a reaction one might have at the time (of a downgrade) is not so clear. There could be …
Ratings agencies Fitch and Standard & Poor’s will review SA’s credit ratings in two months’ time and both agencies have SA just one level above sub-investment grade, or junk status.
"The risks of a downgrade have definitely increased," Mr Mminele said. "So, an element would be priced in already, but how much more of a reaction one might have at the time (of a downgrade) is not so clear. There could be …
